Bitcoin mining firm Core Scientific lost .7 billion in 2022

Bitcoin mining firm Core Scientific lost $1.7 billion in 2022

Publicly-listed Bitcoin mining company Core Scientific has lost about $1.7 billion since the start of the year, according to its quarterly report report filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday.

The filing shows the company posted its second consecutive quarterly loss at the end of the third quarter. The bitcoin miner lost $435 million in the third quarter and $862 million in the second quarter, bringing its net loss for the year to $1.7 billion.

Core Scientific seeks new capital

Core Scientific said it needs new capital before continuing operations this month. The company also noted that it expects its existing cash resources to run out sooner or later this year.

“Given the uncertainty surrounding the Company’s financial condition, substantial doubt exists as to the Company’s ability to continue operations through November 2023,” the company said.

The Bitcoin mining company holds $32 million in cash and 62 BTC in October, up from 8,000 at the start of the year. The company attributed its losses to the sharp decline in the USD value of BTC, rising energy costs and hash rates.

Core Scientific could consider bankruptcy

Following the significant drop in the price of BTC, which was triggered by macroeconomic headwinds, the miner took several steps to increase liquidity and cope with the market.

For example, Core Scientific announced the sale of 7,202 BTC (about $167 million) in July at an average price of about $23,000. At the time, the company indicated that proceeds from sales would be used to pay for ASIC servers, capital investments, and debt repayment.

The company has been unable to clear its debts, which amount to approximately $1 billion. The miner previously revealed he could file for bankruptcy if he could not raise capital to repay his creditors.

Bitcoin Mining Firms Struggle Amid Bear Market

Meanwhile, Core Scientific isn’t the only mining company struggling amid the intense crypto winter. In June, Canadian Bitcoin miner Bitfarms dump $62 million of his BTC to reduce debt and maintain liquidity.

Two months ago, the largest crypto-mining data center operator, Compute North, deposit for Chapter 11 bankruptcy in Texas.

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